43 C.F.R. § 3162.2-5   Must I take protective action when a protective well would be uneconomic?


Title 43 - Public Lands: Interior


Title 43: Public Lands: Interior
PART 3160—ONSHORE OIL AND GAS OPERATIONS
Subpart 3162—Requirements for Operating Rights Owners and Operators

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§ 3162.2-5   Must I take protective action when a protective well would be uneconomic?

You are not required to take any of the actions listed in §3162.2–4 if you can prove to BLM that when you first knew or had constructive notice of drainage you could not produce a sufficient quantity of oil or gas from a protective well on your lease for a reasonable profit above the cost of drilling, completing, and operating the protective well.

[66 FR 1893, Jan. 10, 2001]

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